The AICPA recently released an article titled "Temporary Regulations Create New Applications for Cost-Segregation Studies". It details: Expenses & Deductions, Building Improvements and Repairs, Building Component Dispositions and concluded that "There are a number of considerations to be made in applying the temporary regulations. In addition to dispositions and structural improvements, the temporary regulations prescribe special rules for leased property, condominiums, cooperatives, and network assets. In March 2012, Treasury published Rev. Procs. 2012-19 and 2012-20 to guide taxpayers through the change in accounting method process. Owners of real estate should consider the implications of the new regulations when engaging firms to perform cost-segregation studies. Providers of cost-segregation studies should have a comprehensive understanding of the new regulations as well as an understanding of how these regulations will affect their clients. Providers should work closely with clients to ensure that the studies they provide are tailored to meet their clients’ needs."

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Author: Josh N. Wheeler, CPA, Dallas, and Renee E. Sorrels, CPA, Grand Rapids, Mich. 09/01/2012